FxWirePro: USD/ CNY neutral in the near-term, scope for downward resumption

• USD/CNY edged lower  but losses were limited as investors adopted a cautious stance ahead of the weekend and refrained from making large bets.

• . Markets showed little reaction after China released its December consumer price index (CPI), which rose 0.8% year on year to a three-year high, official data showed on Friday..

• The yuan’s strong start to the year followed a more than 4% rise in 2025 its biggest annual gain since 2020 supported by a broadly weaker U.S. dollar and a year-end rush by exporters to settle foreign exchange..

•On Friday, the People’s Bank of China set the midpoint rate at 7.128 per dollar, nearly 300 pips weaker than the Reuters estimate.

• At GMT 08:30,the dollar   was trading down 0.02 % at 6.982 against Chinese Yuan.

•  Immediate resistance is located at 7.000 (Psychological level), any close above will push the pair towards 7.011 (SMA 20).

• Support is seen at 7.966(23.6%fib) and break below could take the pair towards 6.965 (Lower BB).

Recommendation: Good to sell around  6.985 with stop loss of 6.990 and target price of 6.960